Child benefit cut may hit family businesses, says Baker Tilly

The Chancellor, George Osborne, has been criticised after announcing that, from 2013, child benefit will be withdrawn from families in which one or both parents are higher-rate taxpayers. The measure will affect people earning more than £42,475 a year, encompassing those in the 40% income tax bracket. But the change, under its current guise, means that as long as both parents separately earn less than £42,475, they will keep the benefit, whereas families with one main earner on, for example, £43,000, will see their benefit stopped. Baker Tilly said the change may also affect family...